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Faster-than-Expected Data Center Load Growth May Cause Increased Regional Short-term Fossil Fuel Generation and Wholesale Electricity Prices

LCG, March 18, 2026--The EIA released a new "In-depth Analysis" of the potential impact of faster-than-expected near-term growth in data center power demand on power generation and wholesale prices on March 12. The analysis models the lower 48 states through 2027 and compares results to its base case scenario. Key takeaway from this sensitivity analysis is the potential increase in fossil fuels in some regions and potentially a significant increase in wholesale prices in ERCOT.

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Faster-than-Expected Data Center Load Growth May Cause Increased Regional Short-term Fossil Fuel Generation and Wholesale Electricity Prices

LCG, March 18, 2026--The EIA released a new "In-depth Analysis" of the potential impact of faster-than-expected near-term growth in data center power demand on power generation and wholesale prices on March 12. The analysis models the lower 48 states through 2027 and compares results to its base case scenario. Key takeaway from this sensitivity analysis is the potential increase in fossil fuels in some regions and potentially a significant increase in wholesale prices in ERCOT.

Read more

Industry News

Review Process Begins for Proposed California Plant

LCG, Sept. 26, 2001--After completing a two and one-half-year review process that led to approval Monday for a 600 megawatt power plant to be built in San Jose, the California Energy Commission will take up the application by the City of Burbank to build a 240 megawatt addition to its generating facility.

The Energy Commission voted yesterday to accept the "data adequacy" of the licensing application submitted by the Burbank Department of Water & Power, which will allow the public process to begin for the city's application to build the Magnolia Power Project.

Ronald E. Davis, general manager of the Department of Water & Power, said the commission's decision on the licensing application's completeness is the first major step toward construction of the natural gas-fueled, combined-cycle unit to provide electricity for Burbank and six other participating cities.

"The CEC action begins a 45-day period when the CEC staff will hold an informational hearing and site visit in Burbank as the initial opportunity for public input on project plans," Davis said. "Additional public hearings will be held before the CEC considers final approval for construction in 2002."

"We are hopeful that (Magnolia) can become one of the first power projects to take advantage of a new, six-month licensing process approved by the California Legislature last year," Davis said. "This will help speed construction and allow (the plant) to increase energy availability and reliability for each participating city at very competitive costs."

The cities of Anaheim, Cerritos, Colton, Glendale, Pasadena and San Marcos have joined Burbank in the licensing process being sponsored by the Southern California Public Power Authority, a joint powers agency for 13 Southern California local governments.

Project officials hope to have the magnolia plant on-line by mid-2004.

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